HMRC has signed a 25-year lease for its Birmingham regional hub with the tax authority and department for Work and Pensions (DWP) planning to move 3,600 staff into the offices from 2020, which has been named as the largest pre-let to take place in the city in a decade
The government has agreed to lease 238,988 sq ft at the new Birmingham city-centre development, 3 Arena Central, which will accommodate 3,600 public servants from several government departments from 2020.
HMRC will move its staff from various existing offices in the West Midlands to the new offices in Birmingham with the DWP planning to move staff into the hub from existing offices in the city.
HMRC chief executive Jon Thompson said: ‘We’re delighted to be part of the new UK Government Hub in 3 Arena Central, Birmingham. This is another step in HMRC’s transformation into a modern digitally advanced tax authority.
‘It’s the beginning of a process that will see our colleagues come together in state-of-the art facilities, enabling closer working relationships and increasing our effectiveness in collecting taxes. It will also make HMRC an important contributor to the economy and to communities in and around Birmingham.’
The 14-floor office block at 3 Arena Central will be situated on a plot at the heart of the 9 acre city centre regeneration site, with demolition and site clearance work due to commence imminently and the building handed over for fit out in spring 2020.
Neil Rami, chief executive of the West Midlands Growth Company, said: ‘The Arena Central deal is significant. A public sector hub of this scale will have a positive impact on investor confidence in the region’s commercial property market. We envisage further opportunities as the government repurposes its estate and non-departmental bodies assess the benefits of relocating out of London.’
The location of the hub puts Birmingham’s three main railway stations – Moor Street, Snow Hill and New Street – within easy walking distance, with connections available to Birmingham Airport.
The Birmingham hub forms part of HMRC’s office restructure project where thousands of HMRC staff will relocate to a small number of locations from the current 137 local offices and centres across the country. Up to 6,000 redundancies are expected due to the geographic relocations.
Moving to regional centres will save more than £300m up to 2025, with annual cost savings of around £90m from 2026, while improving customer service and modernising how HMRC work.
Report by Amy Austin
